Why GSTR-2B Mismatch is a Multi-Lakh Financial Risk
Under Section 16(2)(aa) of the CGST Act, a registered taxpayer can claim Input Tax Credit (ITC) only if the supplier has filed their GSTR-1 and the invoice appears in the buyer's auto-drafted GSTR-2B statement.
If a vendor fails to upload an invoice or types an incorrect GSTIN, the buyer cannot claim ITC. If claimed erroneously, the GST department issues automated ASMT-10 scrutiny notices demanding the tax back with 18% annual interest.
The 4 Types of Discrepancies in GSTR-2B
- Type 1: Missing in 2B (Supplier Default) - Invoice is in your books, but supplier didn't file GSTR-1.
- Type 2: Amount / Tax Mismatch - Supplier filed wrong taxable value or selected wrong tax rate (e.g., 12% instead of 18%).
- Type 3: Wrong GSTIN (Cross-filing) - Supplier accidentally tagged another customer's GSTIN.
- Type 4: Eligible vs Ineligible ITC - Invoices where place of supply rules block credit claim.
How Automated Reconciliation Solves This in Seconds
EntryFlow cross-references your purchase invoices directly against the GSTR-2B JSON download from the GST portal, categorizing every invoice into Green (Safe), Amber (Minor discrepancy), and Red (Action required). Your audit team saves days of Excel VLOOKUP matching.